Microsoft Stands by Yahoo Bid

Microsoft Corp. blasted back at Yahoo Inc., saying the Internet company's rejection of its takeover bid didn't alter Microsoft's view that the offer was "full and fair."

The Microsoft response, which followed an earlier Yahoo news release saying that Microsoft's Jan. 31 offer "substantially undervalues" the company, sets the stage for a takeover battle over the Sunnyvale, Calif., Internet company. Microsoft's cash and stock offer effectively values Yahoo at about $41.6 billion, or $28.91 a share, based...